On the evening of the 26th, Nongfu Spring announced its 2023 results, with revenue of 42.667 billion yuan, a year-on-year increase of 28.4%. Among them, the most eye-catching is the tea beverage sector, with revenue exceeding 10 billion, reaching 12.66 billion, a year-on-year increase of 83%.
Although the results announcement did not specifically distinguish between Oriental Leaf and Tea π, it can be roughly inferred from Nielsen data that the annual growth of Oriental Leaf was more than 100% last year, and the compound growth rate in the past three years exceeded 90%. At this rate, Oriental Leaf may become another large single product of Nongfu Spring Company exceeding 20 billion yuan in 2026.
In the first seven years of listing, it still lost money, and it persisted
Although Oriental leaves are the most popular product in the beverage market in recent years, they are known as "leaf miracles" in the industry. But few people know that Nongfu Spring has been cultivated for 12 years.
Oriental Leaf was listed in 2011 and has invested more than 1 billion yuan in R&D and equipment before listing. It took eight years for the product to be on the market and finally accumulated a slight surplus, which can be described as a real eight-year war of resistance. We are looking forward to the expansion of the product, but in 2020, the outdoor activities of the crowd will be greatly reduced. It was not until 2023 that it finally ushered in a blowout year.
For the beverage industry, there is no miracle that can be created in a short time, and only after a long period of accumulation, continuous polishing of products and reaching a certain scale can we create high revenue and high profits.
The future pattern will be "sunrise in the east and rain in the west"
On one side is the oriental leaves, and on the other side will be many people who follow the trend of sugar-free tea, and the competition for sugar-free tea will enter the white heat?
Driven by Oriental leaves, the sugar-free tea market in 2023 ushered in rapid growth, with a year-on-year increase of more than 100%, and only in the first half of the year, 18 brands launched more than 20 new sugar-free tea products.
At the recent sugar and wine fair, sugar-free tea was the most exhibited beverage category, with a conservative estimate of more than 20 new sugar-free tea products.
Some industry experts said that sugar-free tea will continue to maintain rapid growth in the next three years, and more and more companies will join the sugar-free tea track.
Although sugar-free tea drinks are a popular track in the beverage market, there is still a certain threshold, after all, Oriental Leaves has pulled the standard of the entire category to a very high position. Moreover, years of losses will also be a problem for companies that are new to this field.
Therefore, in order to achieve the technical height and quality of Oriental Leaves, new brands need to be prepared to live a hard time.
Source: Sina Finance